LRND vs. PABU

Last updated Jun 23, 2026

LRND (IQ U.S. Large Cap R&D Leaders ETF) and PABU (iShares Paris-Aligned Climate Optimized MSCI USA ETF) are both Large Cap Blend Equities funds - LRND tracks the IQ U.S. Large Cap R&D Leaders Index - Benchmark TR Gross while PABU tracks the MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD). Both are passively managed. Over the past 3 years, LRND returned 21.07%/yr vs 17.67%/yr for PABU. Their correlation of 0.91 suggests significant overlap in exposure. LRND charges 0.14%/yr vs 0.10%/yr for PABU.

Performance

LRND vs. PABU - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in IQ U.S. Large Cap R&D Leaders ETF (LRND) and iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, LRND achieves a 7.55% return, which is significantly higher than PABU's 4.30% return.

LRND

• 1D: -1.34%
• 1M: -2.17%
• YTD: 7.55%
• 6M: 7.49%
• 1Y: 27.35%
• 3Y*: 21.07%
• 5Y*: —
• 10Y*: —

PABU

• 1D: -0.85%
• 1M: -2.15%
• YTD: 4.30%
• 6M: 3.73%
• 1Y: 18.73%
• 3Y*: 17.67%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

LRND vs. PABU - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022
LRND IQ U.S. Large Cap R&D Leaders ETF	7.55%	20.31%	21.68%	44.13%	-19.07%
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	4.30%	13.08%	24.84%	29.51%	-15.45%

Correlation

The correlation between LRND and PABU is 0.94, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.94
Correlation (3Y) Calculated over the trailing 3-year period	0.93
Correlation (All Time) Calculated using the full available price history since Feb 11, 2022	0.91

The correlation between LRND and PABU has been stable across timeframes, ranging from 0.91 to 0.94 - a consistent structural relationship.

LRND vs. PABU - Sectors Allocation Comparison

Sectors	LRND	PABU
Technology	60.4%	52.4%
Communication Services	14.7%	8.4%
Healthcare	9.8%	5.6%
Consumer Cyclical	7.6%	6.2%
Industrials	5.1%	1.6%
Consumer Defensive	1.7%	-
Basic Materials	0.8%	0.5%
Financial Services	0.0%	6.9%
Energy	-	0.8%
Real Estate	-	16.4%
Utilities	-	1.6%

Return for Risk

LRND vs. PABU — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

LRND

LRND Risk / Return Rank: 47
LRND Sharpe Ratio Rank: 51
LRND Sortino Ratio Rank: 49
LRND Omega Ratio Rank: 48
LRND Calmar Ratio Rank: 41
LRND Martin Ratio Rank: 47

PABU

PABU Risk / Return Rank: 35
PABU Sharpe Ratio Rank: 39
PABU Sortino Ratio Rank: 36
PABU Omega Ratio Rank: 37
PABU Calmar Ratio Rank: 29
PABU Martin Ratio Rank: 33

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

LRND vs. PABU - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for IQ U.S. Large Cap R&D Leaders ETF (LRND) and iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	LRND	PABU	Difference
Sharpe ratio: Return per unit of total volatility	1.71	1.33	+0.39
Sortino ratio: Return per unit of downside risk	2.34	1.83	+0.50
Omega ratio: Gain probability vs. loss probability	1.30	1.24	+0.06
Calmar ratio: Return relative to maximum drawdown	1.99	1.40	+0.58
Martin ratio: Return relative to average drawdown	7.63	4.73	+2.89

LRND vs. PABU - Sharpe Ratio Comparison

The current LRND Sharpe Ratio is 1.71, which is comparable to the PABU Sharpe Ratio of 1.33. The chart below compares the historical Sharpe Ratios of LRND and PABU, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

LRND vs. PABU - Drawdown Comparison

The maximum LRND drawdown since its inception was -25.43%, which is greater than PABU's maximum drawdown of -22.76%. Use the drawdown chart below to compare losses from any high point for LRND and PABU.

Drawdown Indicators

	LRND	PABU	Difference
Max Drawdown Largest peak-to-trough decline	-25.43%	-22.76%	-2.67%
Max Drawdown (1Y) Largest decline over 1 year	-13.83%	-13.40%	-0.43%
Max Drawdown (3Y) Largest decline over 3 years	-21.06%	-20.85%	-0.21%
Current Drawdown Current decline from peak	-5.07%	-5.88%	+0.81%
Average Drawdown Average peak-to-trough decline	-6.22%	-5.62%	-0.60%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.60%	3.97%	-0.37%

Volatility

LRND vs. PABU - Volatility Comparison

IQ U.S. Large Cap R&D Leaders ETF (LRND) and iShares Paris-Aligned Climate Optimized MSCI USA ETF (PABU) have volatilities of 6.18% and 6.19%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	LRND	PABU	Difference
Volatility (1M) Calculated over the trailing 1-month period	6.18%	6.19%	-0.01%
Volatility (6M) Calculated over the trailing 6-month period	12.89%	11.49%	+1.40%
Volatility (1Y) Calculated over the trailing 1-year period	16.06%	14.19%	+1.87%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	20.05%	18.76%	+1.29%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	20.05%	18.76%	+1.29%

LRND vs. PABU - Expense Ratio Comparison

LRND has a 0.14% expense ratio, which is higher than PABU's 0.10% expense ratio. However, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.

Dividends

LRND vs. PABU - Dividend Comparison

LRND's dividend yield for the trailing twelve months is around 0.51%, less than PABU's 0.94% yield.

Position	TTM	2025	2024	2023	2022
LRND IQ U.S. Large Cap R&D Leaders ETF	0.51%	0.67%	0.97%	1.22%	1.32%
PABU iShares Paris-Aligned Climate Optimized MSCI USA ETF	0.94%	0.90%	1.00%	1.06%	1.00%

Frequently Asked Questions

Can I hold both LRND and PABU in my portfolio?

With a correlation of 0.94, LRND and PABU move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, LRND or PABU?

PABU has higher volatility (6.19%) compared to LRND (6.18%). In terms of maximum drawdown, LRND dropped -25.43% vs PABU's -22.76%.

Which ETF is better, LRND or PABU?

On 3-year performance, LRND leads with 21.07% vs 17.67% for PABU. On fees, PABU is cheaper at 0.10% per year. Their volatility is very similar. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, LRND or PABU?

Over the 3-year period, LRND has performed better with a 21.07% return vs 17.67%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, LRND or PABU?

PABU is cheaper with a 0.10% expense ratio, compared with 0.14% for LRND.

Which ETF pays a higher dividend yield, LRND or PABU?

PABU has the higher dividend yield at 0.94%, compared with 0.51% for LRND.

What is the main difference between LRND and PABU?

LRND tracks IQ U.S. Large Cap R&D Leaders Index - Benchmark TR Gross, while PABU tracks MSCI USA Climate Paris Aligned Benchmark Extended Select PAB Index (USD). They also come from different issuers: IndexIQ and iShares. Their fees differ too: 0.14% for LRND and 0.10% for PABU.

Which has better risk-adjusted returns?

LRND currently has the higher Sharpe Ratio (1.71 vs 1.33), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.